HARRISBURG – Pennsylvania residents who work in Maryland may soon be able to participate in telework opportunities under a bill approved by the Senate Finance Committee on Tuesday morning.
The legislation, sponsored by Sen. Kristin Phillips-Hill (R-York), would make the temporary guidance issued by the Pennsylvania Department of Revenue during the pandemic permanent. The guidance allowed for employees who work for out-of-state corporations to work from home without triggering state tax laws that would require the company to pay Pennsylvania’s Corporate Net Income Tax (CNIT).
Phillips-Hill noted there are a lot of lessons that can come out of the pandemic but said this is a major opportunity to get ahead of the teleworking trend.
“We can attract new residents to this state and allow them the flexibility to work from home for part of the year without significant tax implications for their employers,” she said. “The measure has strong bipartisan support, but the most important support comes from the dozens of constituents who would benefit from this commonsense change to our tax laws.”
The measure advances to the full Senate for consideration.